India, the world’s top rice exporter, has seen its rice export prices fall to the lowest level in more than three months this week, driven by subdued demand and ample supplies.
The price of India’s 5% broken parboiled variety declined to $528-$536 per ton, down from $538-$546 the previous week. Prices had hit a record high of $560 last month.
Exporters attributed the price drop to weak demand from Asian and African countries. Some exporters are paying lower duties on exports and offering rice at a lower price to overseas buyers, according to an exporter based in Andhra Pradesh.
New Delhi had imposed a 20% export duty on parboiled rice exports in August 2023 to control domestic rice prices.
In contrast, prices in other major rice exporters remained largely flat. Vietnam’s 5% broken rice was offered at $575-$580 per ton, unchanged from the previous day. Trading activity is slowing down ahead of a five-day-long holiday in Vietnam starting this weekend.
Thailand’s 5% broken rice prices were quoted between $580-$585 per ton, similar to last week’s levels. Price movement was flat due to demand from Indonesia and a depreciating Thai baht, said a Bangkok-based trader.
Meanwhile, Bangladesh’s rice output from the summer crop is expected to hit 20.50 million metric tons, up from 20 million metric tons, as farmers increased acreage to capitalize on higher prices.
The decline in India’s rice export prices reflects the weakening demand in the global market, which has put pressure on the world’s largest exporter of the commodity. The situation highlights the sensitivity of the rice trade to changes in global supply and demand dynamics.